Category Archives: Tax avoidance

Safe haven to sanctions: how Jersey sheltered Roman Abramovich’s billions

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Court papers show the island cautiously welcomed the oligarch – with London’s approval – before Russia’s invasion of Ukraine

For decades the Channel Islands tax haven of Jersey has played a big role in moving fortunes made in some of the world’s most despotic countries into the west, attracting overseas oligarchs with a mix of low tax and high levels of financial secrecy.

It is a secrecy that extends to Jersey’s relationship with the UK government. As a crown dependency, Jersey has its own parliament, but belongs to the king. The relationship between the two jurisdictions remains something of a black box, with very little public information on how the big decisions are made, or to what extent Westminster is consulted.

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Court orders seizure of counterfeit underwear seller’s £90m assets

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Ferrari and property owned by Arif Patel, tax fraudster who has been on the run since 2011, will be sold at auction

A self-styled clothing tycoon who sold counterfeit socks and pants while operating an extensive fraud ring will have all his UK assets seized after the Crown Prosecution Service won a court order to confiscate up to £90m worth of property and luxury cars.

Arif Patel, 57, from Preston, Lancashire, who has been on the run since 2011, will have homes and business premises he owned taken from him after a confiscation order granted by a judge at Chester crown court on Thursday.

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UK’s anti-corruption champion to visit offshore haven on fact-finding mission

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Foreign Office sending Margaret Hodge to British Virgin Islands to investigate slow progress against financial crime

The Foreign Office will dispatch the UK’s anti-corruption champion, Margaret Hodge, to the British Virgin Islands (BVIs) to find out why the offshore haven is dragging its feet on proposals designed to fight financial crime.

Several of the UK’s semi-autonomous British overseas territories missed last month’s deadline to implement new registers of corporate ownership, a measure targeting the secrecy regimes campaigners say benefit criminals and kleptocrats.

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At least £64bn of property in England and Wales is hidden behind opaque trusts

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Campaigners say secretive ownership structures are becoming the ‘go-to vehicle for kleptocrats’

The owners of nearly a quarter of a million properties in England and Wales worth a combined £64bn are hidden behind opaque trusts, according to research that prompts concern that such structures are the “go-to vehicle for kleptocrats” stashing money in Britain.

The government introduced a register of property held through offshore vehicles in August 2022, revealing a string of unknown owners, including high-profile figures such as Lewis Hamilton and James Dyson, as well as sanctioned Russians, Gulf royals and the Chinese state.

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‘Silicon Six’ accused of avoiding almost $278bn in US corporation taxes over 10 years

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Analysis finds Amazon, Meta, Alphabet, Netflix, Apple and Microsoft averaged 18.8%, compared with 29.7% US average

The big American tech firms known as the “Silicon Six” have been accused of paying almost $278bn (£211bn) less corporate income tax in the past decade compared with the statutory rate for US companies making the same profits.

Amazon, Meta, Alphabet, Netflix, Apple and Microsoft generated $11tn of revenue and $2.5tn of profits over the past 10 years.

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HMRC investigations of wealthy ‘tax dodgers’ halve in five years

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The drop in civil inquiries by fraud unit sparks criticism that the authority’s use of its powers of enforcement are waning

The number of civil investigation cases opened by a HM Revenue and Customs (HMRC) fraud unit investigating offshore, corporate and wealthy taxpayers has fallen by more than half in five years, figures reveal.

The Observer reported last month that HMRC has not charged a single company under landmark legislation to crack down on tax evasion. Campaigners warned that HMRC was undermining its own deterrents by failing to use its criminal enforcement powers.

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HMRC has not charged a single company over tax evasion under landmark legislation

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Powers bestowed by the Criminal Finances Act 2017 are not being used effectively, say critics

HMRC has not charged a single company under landmark legislation passed six years ago to crack down on corporate tax evasion.

Critics say the data, released under freedom of information laws to the Bureau of Investigative Journalism and TaxWatch, suggests that HMRC is undermining its own deterrents against corporate tax evasion by failing to use its criminal enforcement powers.

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Tax firm run by SNP’s auditors accused of potentially running avoidance scheme

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Company challenged over advice that one expert says will enable families to avoid paying tax on private school fees

A boutique tax advisory firm run by the Scottish National party’s new auditors has been accused of potentially running a tax avoidance scheme to help parents who are paying private school fees.

Signature Tax, an offshoot of AMS Accountants Group, offers clients “tailored tax solutions” on its website, including advice on paying fees in a “tax efficient manner”.

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India accuses BBC of tax evasion amid Modi documentary row

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Country’s finance ministry claims broadcaster has not fully declared its income and profits

India’s finance ministry has accused the BBC of tax evasion, saying that it had not fully declared its income and profits from its operations in the country.

Indian tax authorities ended three days of searches of the British broadcaster’s Delhi and Mumbai offices on Thursday night. Opposition political parties and other media organisations have criticised the searches as an attempt to intimidate the media.

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London council could seize oligarchs’ homes for affordable housing

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Exclusive: Westminster looking at compulsory purchase orders to tackle laundering of ‘dirty money’

Homes acquired with “dirty money” in the richest parts of London could be seized and turned into affordable housing under plans to crack down on oligarchs using Belgravia, Knightsbridge and Mayfair “to rinse their money”.

Labour-controlled Westminster city council is examining the use of compulsory purchase orders in extreme cases where it finds properties are not being used for their stated purpose, as part of a push to “combat the capital’s reputation as the European centre for money laundering”.

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Labour accuses Sunak family of avoiding tens of millions in taxes

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Chancellor obfuscated while imposing steep tax rises on ordinary Britons, says shadow minister

Rishi Sunak and his family potentially avoided paying tens of millions of pounds in taxes through his wife’s “non-dom” status while the chancellor imposed tax rises on the public, Labour has said.

The chancellor’s wife, Akshata Murty, gave in to mounting pressure on Friday, announcing she would pay UK taxes as Sunak’s position began to appear increasingly tenuous.

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Millionaires call on governments worldwide to ‘tax us now’

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Group of 102 wealthy people say tax would help tackle gulf between rich and poor

More than 100 members of the global super-rich called on Wednesday for governments around the world to “tax us now” to help pay for the pandemic response and tackle the gulf between rich and poor.

The group of 102 millionaires and billionaires, including Disney heiress Abigail Disney, said the current tax system is rigged in their favour and needs to be rewritten to make taxation fairer for hard-working people and restore trust in politics.

Pay for the Health and Social Care Levy twice over every year – eliminating the need to raise national insurance on working people.

Cover the salaries of an additional 50,000 new nurses.

Pay for the permanent increase of universal credit.

Build 35,000 affordable houses and retrofit the UK’s draughtiest homes to reduce the cost of energy bills and help fight the climate crisis.

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Google to pay £183m in back taxes to Irish government

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Firm’s subsidiary in Ireland agrees to backdated settlement to be paid in addition to corporation tax for 2020

Google’s Irish subsidiary has agreed to pay €218m (£183m) in back taxes to the Irish government, according to company filings.

The US tech company, which had been accused of avoiding hundreds of millions in tax across Europe through loopholes known as the “double Irish, Dutch sandwich”, said it had “agreed to the resolution of certain tax matters relating to prior years”.

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G20 leaders to endorse Biden proposal for global minimum corporate tax

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Leaders of the world’s 20 biggest economies will endorse a US proposal for a global minimum corporate tax of 15%, draft conclusions of the two-day G20 summit in Rome showed on Saturday.

The G20 plans to have the rules in force in 2023.

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European banks storing €20bn a year in tax havens

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Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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G20 backs crackdown on multinationals’ use of tax havens

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Finance chiefs endorse landmark move to prevent profits being shifted to low-tax countries

Finance chiefs of the G20 economies have endorsed a landmark move to stop multinationals shifting profits to tax havens and will also warn that Covid variants threaten the global economic recovery.

At talks on Saturday, they also acknowledged the need to ensure fair access to vaccines in poorer countries. But a draft communique to be rubber-stamped at the meeting in Venice did not contain specific proposals on how to achieve that.

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Clamour for wealth tax grows after revelations about super-rich’s affairs

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Data leak published by ProPublica fuels calls to tighten up system which sees ultra-wealthy pay little or no tax

The revelation last week that the 25 richest US billionaires have paid very little tax even as their fortunes have soared has reignited demands for wealth taxes on both sides of the Atlantic.

An unprecedented leak of “a vast trove” of 15 years of Internal Revenue Service (IRS) data to the investigative news site ProPublica has provided a staggering insight into the legal strategies the very rich deploy to avoid tax.

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Richest 25 Americans reportedly paid ‘true tax rate’ of 3.4% as wealth rocketed

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ProPublica investigation shows how little US super-rich, including Jeff Bezos and Elon Musk, reportedly paid between 2014 and 2018

The 25 richest Americans, including Jeff Bezos, Warren Buffett and Elon Musk, paid a “true tax rate” of just 3.4% between 2014 and 2018, according to an investigation by ProPublica, despite their collective net worth rising by more than $400bn in the same period.

Related: Global economy set for fastest recovery for more than 80 years

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G7 plan ‘will slash UK tax revenue from US tech firms’ say experts

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Global tax changes could mean Treasury loses £230m digital services tax receipts from Google, Amazon, Facebook and eBay

Experts have warned that US tech companies, including Google, Amazon and Facebook, could pay less tax in the UK and several other big economies under global reforms agreed at the weekend by the G7.

In a key stumbling block emerging days after the landmark deal, research from the TaxWatch campaign group indicates that the UK Treasury stands to lose about £230m from the taxes paid each year by four of the big US tech firms.

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‘Historic agreement’: Rishi Sunak announces G7 deal on tax reform – video

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Finance ministers from the world’s richest economies have agreed a deal to tackle tax abuses by some of the world’s biggest multinationals and establish a minimum global corporation tax for the first time. Announcing the deal, the UK chancellor, Rishi Sunak, said it would create ‘a fairer tax system fit for the 21st century’

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